Google Kills the Adserving Industry

March 14, 2008 · Filed Under Entrepreneurial · 2 Comments 
Today, we’re announcing a new tool for publishers with the beta launch of Google Ad Manager. Directed at addressing the ad management and serving needs of publishers with smaller sales teams, Google Ad Manager is a free, hosted ad and inventory management tool that can help publishers sell, schedule, deliver and measure their directly-sold and network-based ad inventory.

With the beta launch of Ad Manager, Google can combine analytics, adserving, and a media network for free. If this works, they not only raised the bar for those competing in the adserving industry (Atlas, Openx, The Rubicon Project), but they just put a few of them out of business. One negative I see, is Google is going to have a lot of private publisher and advertiser data, since they are hosting it, and that’s a major turn off for tier 1 and some smaller publishers.

Other adservers can compete by offering better service, privacy, or offer an alternative self hosted version of the adserver so Google will not have your site and advertiser data. They can also look into incorporating direct sales into their product, and sell it as a stand alone or in modules.

Something still missing here is that there are very few companies enabling publishers to control their impression inventory by selling packaged cpm rates to advertisers. No adserver does that, it’s usually sold as a separate asp solution. So there is still a piece of the market that Google doesn’t own, yet.

Do you run an adserver? How does Google’s Ad Manager beta affect you?

Next Page »